Stonegate Group, the owner of Slug & Lettuce and Be At One, is considering the potential sale of over 1,000 of its pubs. With a total of 4,300 venues in its pub chain, Stonegate might be looking to offload approximately a quarter of its establishments. The Times initially disclosed that discussions have been ongoing between Stonegate executives and potential advisors.
Reports indicate that around 1,034 of Stonegate’s top-performing pubs, referred to as “platinum” pubs, could be on the market, with a combined estimated value of £1 billion. Despite a revenue exceeding £1.7 billion in the previous year, Stonegate is burdened with debts exceeding £3 billion.
The acquisition of Ei Group in 2019 significantly contributed to Stonegate’s debt load, a move that occurred just before the onset of the pandemic, which led to widespread pub closures nationwide.
According to a spokesperson from Stonegate, no final decisions have been made yet regarding the potential sale of the Platinum portfolio, which comprises about 1,000 Leased and Tenanted pubs. Stonegate previously attempted to sell a similar number of pubs in 2023 without success, resulting in a refinancing deal worth £638 million with Apollo, a private equity firm.
The non-call period on the loan secured by Stonegate, which prevented the sale of the pubs, is set to expire in January. Established in 2010 following the purchase of 333 pubs from Mitchells & Butlers for £373 million by TDR Capital, Stonegate has been actively managing its portfolio, recently listing 23 pubs for sale.
In other pub-related news, Tim Martin, the head of Wetherspoon, aims to minimize price hikes despite the company’s strong revenue of £2.13 billion for the year. Martin emphasized the challenges faced by the industry due to tax increases and rising energy costs, expressing Wetherspoon’s commitment to keeping price increases to a minimum for the benefit of its customers.